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Loans - Federal |
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Loan Processing |
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Northeastern University is a full participant in the William D. Ford Federal Direct Loan Program. As a full Direct Loan particiant, Northeastern University will not be able to certify Federal Stafford and PLUS Loans through the Family Federal Education Loan Program (FFELP).
The Direct Loan program offers many benefits to Northeastern students and parent borrowers, including:
• Consistent access to loan funds directly from the U.S. Department of Education
• Competitive rates and repayment options available to all borrowers
• Simple application process
• Quick receipt of funds
• Excellent customer service
Click on a link for additional information on the following Federal loans:
Federal Stafford Loan
Federal PLUS Loan
Federal Perkins Loan, Health Professions Loan, Nursing Loan |
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Federal Direct Stafford Loan
This loan may be subsidized, unsubsidized, or a combination of both. With a subsidized loan, which is awarded based on financial need, the federal government pays interest that accrues while you are in school. The unsubsidized loan is not based on need; interest that accrues while in school must either be paid monthly or deferred and capitalized (added to the original loan balance). Financial need is determined by the Office of Student Financial Services.
Loan funds are disbursed directly to Northeastern in equal amounts over each term of enrollment for the academic year. There is a 6-month grace period prior to repayment following graduation, withdrawal, or a drop below half-time status. See the Loans-Repayment section for additional information on repayment options. For a typical undergraduate student borrower, the average federal student loan debt is $17,121 upon degree completion (based on data from the May 2008 graduating class).
In order for first-time borrowers to receive Stafford Loan funds, the online Federal Entrance Interview and Stafford Loan Master Promissory Note (MPN) must be completed. The Federal Entrance Interview is located on myNEU. The Stafford Loan MPN can be completed at www.dlenote.ed.gov.
View the Stafford Loan page for information on interest rates, annual loan amounts, and aggregate loan totals. |
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Federal Direct PLUS Loan
The federally sponsored PLUS loan is a low-interest student loan for graduate level students and the parents of dependent undergraduate students, who are attending at least half-time. The interest rate is a fixed 7.9%. There is a 2.5% origination fee (which is net of a 1.5% up-front rebate that assumes 12 on-time monthly payments) deducted from the proceeds of the loan. Loan funds are disbursed directly to Northeastern in equal amounts over each term of enrollment for the academic year. The maximum amount that can be borrowed is the cost of education less any other forms of financial aid. PLUS loans must be processed according to federal regulations, which stipulate that a loan cannot be processed after the end of the loan period. Thus, you cannot use a federal PLUS loan to pay a back balance.
For additional information on the Parent PLUS Loan and Graduate PLUS Loan, visit the PLUS Loans page. |
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Federal Perkins Loans, Health Professions Student Loans, and Nursing Student Loans
These federal loan programs carry a 5% interest rate during repayment. You must demonstrate financial need and meet Northeastern's priority filing date for consideration, as funds are limited. Northeastern serves as the lender, and the loan is made with government funds. Repayment is made to Northeastern.
For Perkins Loans, there is a 9-month grace period prior to repayment following graduation, withdrawal, or a drop below half-time status. The grace period is 12-months for Health Professions and Nursing Student Loans. Repayment on the loan is for a period of up to ten years with a minimum $50 monthly payment. The loan may be prepaid at any time without penalty.
To be eligible for the Health Professions Loan Program applicants must be enrolled full-time in the School of Pharmacy in the Bouvé College of Health Sciences. To the eligible for the Federal Nursing Student Loan applicants must be enrolled full-time in the School of Nursing in the Bouvé College of Health Sciences. |
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